Broadstone Net Lease, Inc. reported a net income of $99.4 million, or $0.50 per diluted share, for the fiscal year ending December 31, 2025, a decrease of 41.2% compared to $169.0 million, or $0.86 per diluted share, in the previous year. The company's total lease revenues increased by 5.2% to $454.1 million, driven by contractual rent escalations and a full year of rental revenue from property acquisitions and developments. However, this growth was offset by a significant decline in gains from property sales, which fell to $12.6 million from $73.2 million in 2024. The company also recognized $39.7 million in impairment charges related to changes in its long-term hold strategy for certain properties.
In terms of operational metrics, Broadstone's portfolio consisted of 771 properties, with a 99.8% occupancy rate and an average remaining lease term of 9.6 years. The company invested a total of $748.4 million in 2025, including $429.9 million in new property acquisitions and $209.3 million in build-to-suit developments. The weighted average cash capitalization rate for these investments was 7.0%, with an average annual rent increase of 2.6%. The company maintained strong rent collection, achieving a 99.8% collection rate for base rents due during the year.
Strategically, Broadstone extended the maturity of its $1.0 billion revolving credit facility to March 2029 and entered into a $500 million unsecured term loan expiring in March 2028. The company also completed a public offering of $350 million in senior unsecured notes due in 2032, which were used to repay existing debt and fund real estate investments. As of December 31, 2025, Broadstone's total outstanding debt was approximately $2.5 billion, with a net debt to annualized adjusted EBITDA ratio of 6.0x.
Looking ahead, Broadstone aims to continue its growth through a diversified acquisition pipeline and build-to-suit developments, while managing its leverage and maintaining an investment-grade balance sheet. The company expects to leverage its strong relationships with brokers and developers to access off-market investment opportunities and maintain its focus on creditworthy tenants in industries with positive business drivers. However, the company acknowledges potential risks, including tenant defaults and economic downturns, which could impact its financial performance and ability to meet its distribution requirements as a REIT.
About Broadstone Net Lease, Inc.
Broadstone Net Lease, Inc. is a real estate investment trust (REIT) specializing in single-tenant, net-leased commercial properties primarily in the industrial and retail sectors. Its diversified portfolio spans 765 properties across 44 U.S. states and Canadian provinces, leased to creditworthy tenants under long-term agreements with rent escalations. Broadstone focuses on mission-critical locations, offering stable, inflation-protected income through acquisitions, developments, and capital investments.
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